There are many things you may wish to do for your loved one with a disability, but one of the best things you can achieve is opening a special-needs trust. There are various types, like first- and third-party trusts, community trusts and others, but the outcome is the same: They protect your loved one’s best interests.
Trusts made for those who are disabled help them maintain their government-provided benefits, which is their major appeal. Funding can come from anywhere, and it may even come from a group, as is the case in a community trust.
What is a special-needs trust?
This a type of trust that provides for individuals living with a disability. The trust is a legal entity on its own, and it may include property or money for the disabled person.
Why choose a special-needs trust?
There are multiple reasons to choose a special-needs trust. One of the primary reasons is because it protects your disabled loved one’s eligibility for government-sponsored assistance programs. How? The money or property doesn’t technically belong to the beneficiary. It’s handled by a third party, so it’s not counted in their income or assets.
Assets in the special-needs trust can be used to better your loved one’s life, and it pays out to other possible beneficiaries in the event that the disabled individual passes away.
Who benefits if the disabled party dies?
The SNT pays out to remaining beneficiaries if or when the disabled beneficiary passes away. For example, if the beneficiary has two sisters, they will obtain the remaining balance of the trust. There is a catch, which is that you must name these individuals in the trust.
Special-needs trusts help protect your loved one, and their value can’t be overstated. It’s a good idea to start finding out about the various types of trusts available, so you can learn more about the trusts that you have an opportunity to open.
The right trust could be a huge support to a loved one with a disability, even if you are still there to be a support on your own. Being in control of their finances and knowing that continual support is available reduces stress and provides your loved one with a sense of independence, freedom and balance.
These trusts are private, which further goes on to protect your loved one. Look into them carefully, because they could be the right choice for your situation.